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The Centre has lowered the 'trait' (licence) fee for genetically modfied (Bt) cotton by 70 per cent for 2016-17.
The decision is in line with the recommendations of a panel constituted by it to determine a uniform national price of cotton hybrid seeds. The recommendations had prompted a Monsanto joint venture to say it would, then, be re-evaluating its operations in India.
Read more from our special coverage on "BT COTTON"
| DISPUTE OVER COTTON |
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The uniform national sale price of Bollgard-1 cotton hybrids has been fixed at Rs 635 per 450 g packet and Rs 800 a 450 g packet for Bollgard-II. No trait fee is to be charged for the former; for the latter, it is Rs 49 (included in the Rs 800 a packet price).
The panel was formed in line with the Cotton Price Control Order of December 2015, empowering the Centre to fix a uniform national price of cotton hybrids, including Bt cotton. The committee was chaired by a joint secretary in the Union agriculture ministry.
At present, a 450g packet of Bt cotton is sold at Rs 830 in Maharashtra and at Rs 930 in Karnataka, Andhra Pradesh, Telengana, Gujarat and Tamil Nadu. In the northern states of Punjab, Haryana, Rajasthan, etc, it is Rs 1,000. The trait fee till now was a uniform Rs 187 per 450g packet.
The retail sale price for Bollgard-2 fixed by the government is almost 25 per cent less than the highest prevailing price of Bt cotton in northern states and 14 per cent less than the one in areas where the sales are highest for the variety.
Mahyco Monsanto Biotech (MMBL), a joint venture between Maharashtra Seeds Corporation and Monsanto India Ltd, is licence holder for all Bt seeds in India. Last week, it had made the treat of revaluating its India operations if the panel recommendations were enforced. With the Centre having done so, a MMBL spokesperson said it would examine the notification in detail and then comment.
National Seed Association of India said of the Monsanto warning: "After collecting a huge royalty of Rs 6,000 crore and when its technology is losing efficacy, they are trying to divert attention by making such threats."
The December 2015 order was issued after complaints that license providers had not lowered their licence fees despite reduction in the retail sale price of cotton, hurting the interest of farmers.
MMBL and other licence providers have approached a high court against the circular, arguing the Centre does not have the power to determine a licence fee agreed between two parties. The Centre has approached the Competition Commission of India with a complaint of unfair trade practices by some seed companies. CCI has ordered an investigation.
Meanwhile, Agriculture Minister Radha Mohan Singh on Wednesday defended the cotton seed price control order, which empowered the Centre to fix a uniform national price for cotton, saying it was needed in the interest of farmers and also to bring about uniformity in pricing.
